OI Corporation CEO resigns following option-dating investigation.College Station, TX 3/23/07--William W. Botts, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of OI Corporation, has resigned following the completion of an investigation by a special committee into the company's stock option practices (see IBO Ibo: see Igbo. 1/31/07). The special committee reviewed stock option grants issued between 1985 and 2006 and found incidences of misdated option grants, the issuance of options after their expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. , and errors in the determination of exercise prices for automatic option grants to Board members. Mr. Botts was found to have tendered common stock to pay the exercise price of stock options without full disclosure to the Board that he used the high sale price on the day he exercised his stock options. On one occasion, there was evidence he backdated the exercise price to retain up to 7,004 additional shares. The company is currently undertaking remedial actions A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. . The company stated, "The limited controls and the lack of definitive processes for stock option granting and approval allowed for abuse, including on three separate occasions the apparent use of hindsight in the establishment of more favorable grant dates and exercise prices for options." OI will restate its financial statements, reducing retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and increasing additional paid in capital by $371,000. Corporate Secretary Jane Smith also resigned. |
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